A record number of companies are set to reduce their advertising budgets on X next year, driven by fears that extreme content on the platform could harm their brands.
According to a global survey by market research firm Kantar, a net 26% of marketers plan to cut their spending on X in 2025, marking the largest pullback from any major global ad platform.
Only 4% of marketers believe X ads offer “brand safety,” meaning ads are unlikely to appear alongside harmful content, compared to 39% for Google ads.
Gonca Bubani, Kantar’s global thought leadership director for media, noted, “Advertisers have been moving their marketing spend away from X for several years,” and added that “a turnaround currently seems unlikely.”
Bubani attributed the decline to the platform’s unpredictability and challenges in maintaining brand safety.
Despite fewer ads on X leading to a more positive perception among consumers, Musk’s efforts to regain advertiser trust have not fully succeeded.
After a rocky period, including Musk’s provocative comments and a lawsuit against an influential ad industry group, the platform has struggled to attract and retain major brands.
Musk had previously told advertisers to “go f**k yourself,” but attempted a charm offensive at the Cannes Lions festival in June, asserting that advertisers should have the right to be associated with content that aligns with their brands.
An X spokesperson defended the platform, stating that it now provides stronger brand safety and analytics capabilities, with a “brand safety rate on average 99%,” according to DoubleVerify and Integral Ad Science.
However, since Musk’s $44 billion acquisition of the platform in 2022, numerous big brands have withdrawn due to concerns about content moderation and the platform’s uncertain future.
This retreat was exacerbated by Musk’s endorsement of an antisemitic conspiracy theory, which led to further brand withdrawals.
The Kantar report, based on interviews with 1,000 senior marketers and 18,000 consumers across over two dozen countries, also revealed that X is not among the top 10 brands for trust or innovative advertising perception.
YouTube remains the top choice for marketers, while Amazon and TikTok are preferred by consumers.
Additionally, Brazilian President Luiz Inácio Lula da Silva criticized Musk’s “far-right anything goes” agenda, leading to Brazil blocking X following a Supreme Court order due to Musk’s refusal to appoint a new legal representative in the country.
This action intensified an ongoing dispute over free speech and misinformation online.
Source-CNN
